Salix Secures Additional Intellectual Property Relating To Rifaximin

Salix Pharmaceuticals, Ltd.

today announced that Cipla Limited has granted Salix exclusive rights under certain patent applications in the “Rifaximin Complexes” patent family controlled by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa. Additionally, Salix and Cipla have expanded the scope of their 2009 exclusive license agreement whereby Cipla granted Salix exclusive rights in the United States, Canada and Mexico under certain patent rights covering amorphous rifaximin. By means of this amendment to the 2009 agreement, the rights already licensed to Salix in the United States, Canada and Mexico are expanded to include certain patent rights in the European Union, Japan, Australia, New Zealand and South Korea. Salix is required to make an up-front payment and, upon achievement, additional regulatory milestone payments to Cipla in respect of the new license agreement regarding the “Rifaximin Complexes” patent rights. Salix also will pay royalties on net sales of products covered by the “Rifaximin Complexes” patents licensed to Salix.